Presenting a Model for Simulating the Factors Affecting Customer Attraction Rate: a System Dynamics Approach (Case Study: Sepah Bank)

Document Type : Original Article

Authors

1 PhD student in Industrial Management, Department of Industrial Management, Faculty of Management, Tehran University of Science and Research, Iran.

2 Assistant Professor, Department of Industrial Management, Faculty of Management, Semnan Branch, Islamic Azad University, Semnan, Iran.

3 Associate Professor, Department of Mathematics, Faculty of Basic Sciences, University of Qom, Qom, Iran.

4 Associate Professor, Department of Management, Faculty of Management,West Tehran Branch, Islamic Azad University, Tehran, Iran.

Abstract

Today, customer attraction ability has come to be known as a competitive advantage in different organizations. Taking this into account, organizations must deal with the problem of demand reduction by adopting a strategy that enables them to retain existing customers and attract new ones. Therefore, in the present study, the principles and components of system dynamics were used to investigate the performance of Sepah Bank in this field. Employment of system dynamic modeling for customer attraction purposes in a financial institution is one of the innovative aspects of the study. 11 main indicators of organizational performance extracted from the research literature were used for this purpose. In the presented model, the structural relationship and the significance of each variable were determined by experts. Afterwards, the system dynamics concepts were used to present (in causal loop diagram) the effect of these factors on the rate of customer attraction through banks and advertisement. In order to account for the functions of the proposed model, the researcher then examined the variables in three scenarios to determine the effectiveness of each under different conditions. Finally, the proposed scenarios showed that using the optimal scenario, one can improve customer attraction rate by 20% through the pre-determined model relations. The results of the study can be used toformulate customer attraction strategies in Sepah Bank.

Keywords

References

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